Loblaws has missed its quarterly revenue targets and the company is deciding to shake things up as it forges ahead with plans to move away from electronics in Shoppers Drug Mart and the French pharmacy Pharmaprix.
In a call with analysts, the company’s chief financial officer, Richard Dufresne, claimed that electronics are extremely low margin and people who buy them in the drug stores typically don’t buy other high-margin wares, so the return on investment to stock electronic items is quite low, according to a report in La Presse.
While this doesn’t come as much of a surprise, it is sad to see Loblaws walk away from electronics, leaving the Canadian tech market basically in the hands of Amazon and Best Buy, with Walmart offering a bit, but much less than it used to.
Also, from the call, it seems that Shoppers Drug Mart will continue to promote more cosmetics in its stores and might scale back some of its grocery ambitions.
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